For sale signs currently seem to be a thing of the past, as first time home buyers search for available properties in a scarce market. Even with a sudden increase in housing construction, the best seen since 2006, the amount of homes for sale is predicted to remain low with owners choosing to stay put.
A report released yesterday from the U.S. Census Bureau showed that home starts jumped to 5.8 percent (an estimate of 11.0 percent) in December compared to construction that took place in November 2020.
Home starts bring some promise to young couples and buyers actively seeking, yet the number of buyers fishing the market will outweigh the number of homes up for sale. The reason for the lack of housing largely persists due to owners refusing to sell at this time.
Last year, as mortgage rates temporarily dropped and interest froze, homeowners seized the opportunity to review their mortgage options and threw out any plans for moving. Refinancing was the name of the game, as this gave a breath of fresh air to owners who formerly held high monthly mortgage payments. Experts predict rates of the Federal Reserve to remain low for years to come.
Unfortunately, the average home prices are expected to rise from 2020’s major market reset. The best available and affordable option in 2021 may just have many buyers becoming renters. Renting will not bring much relief this year as people still seek assistance to cover their monthly payments, but the demand for apartments will welcome many searching for a new living space.
Our advice for you is to keep an eye out on the market, checking often for registered properties that go live. Stay true to your projected budget, learn as many home buyer tips as possible, and have a backup plan for where you want to live at least starting out.
Despite the slow start to 2021 sales, for those who can secure a new home, this year may be the best time to plan for their future comfortably.